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- Arizona Lithium (AZL) enters a strategic alliance terms sheet with Navajo Transitional Energy Company (NTEC)
- The sheet outlines how NTEC will manage the development of AZL’s Big Sandy project in Arizona, from permitting requirements through to a definitive feasibility study and mine construction
- AZL Managing Director Paul Lloyd says the agreement with NTEC represents a “monumental breakthrough” in the sustainable development of Big Sandy
- The companies aim to reach a final definitive agreement whereby NTEC will become an AZL shareholder, subject to it meeting certain mining development milestones at Big Sandy
- AZL shares are up 4.23 per cent to trade at 7.4 cents at 1:10 pm AEDT
Arizona Lithium (AZL) has entered a strategic alliance terms sheet with Navajo Transitional Energy Company (NTEC).
The non-binding terms sheet will see the companies work on the development of Arizona’s Big Sandy project in Arizona while providing time for further mutual due diligence and the development of a definitive agreement.
NTEC will manage the development of the lithium project, from the permitting requirements for additional drilling to a definitive feasibility study (DFS) and mine construction.
NTEC is highly experienced with projects like Big Sandy, as it owns the Navajo mine in the Native American reservation in the US, holds a seven per cent interest in the Four Corners Power Plant, and also owns and operates mines in Montana and Wyoming.
AZL Managing Director Paul Lloyd said the agreement with NTEC represented a “monumental breakthrough” in the sustainable development of Big Sandy.
“NTEC will take over the operational development of Big Sandy and will manage all aspects from the permitting requirements for additional exploratory drilling process through to mine design, environmental assessments, construction, and contract mining operations for the project,” Mr Lloyd said.
Under the terms sheet, NTEC’s Managing Director, Vern Lund, will be appointed to AZL’s board, further strengthening the relationship between the businesses if a definitive agreement is signed.
If the companies do enter a final definitive agreement, NTEC will receive cash or AZL shares and options to purchase additional ordinary shares and become a substantial Arizona Lithium shareholder. NTEC will do this by meeting certain mining development milestones at Big Sandy.
AZL shares were up 4.23 per cent to trade at 7.4 cents at 1:10 pm AEDT.
